The Year in Summary
•Positive result
Boliden posted a result after net financial items for the full year of 2002 of SEK 111
(-3 756) million.The EPS was SEK 1.54 (-26.08).
•Production records
Boliden reported a production record at the Swedish mines of Aitik, the Boliden Area and Garpenberg. The Rönnskär smelter also reported a production record for not only copper, but gold and silver as well.Production also developed positively for other units during the year.
•Exploration successes
An extensive mineralization was discovered at Lappberget near Garpenberg. It indicates the potential for substantial volumes and high grades of mainly zinc, lead and silver. Two separate mineralizations of zinc and silver, and copper, gold and zinc, respectively, were discovered at the Kristineberg mine in the Boliden Area.
•Deterioration in market conditions
The prices of several of the metals produced by Boliden were lower in 2002 than in the previous year. Lower rates of economic growth, reduced demand and increased metal stocks, put pressure on metal prices. However the gold price hit record highs. Lower metal prices and a shortage of mining concentrates had a negative effect on treatment and refining charges.
•Dollar hedging brings stability
As a result of Boliden's hedging of the US dollar on exchange rates in excess of SEK/USD 10.70,the weakening of the US dollar in 2002 had no effect on sales revenues.
•Acquisitions and partnerships
Boliden initiated the consolidation and restructuring of Europe's copper tubing and brass market through the acquisition of the Dutch copper tubing manufacturer, HME Nederland, and the start of cooperation in the Nordic brass market.